Bay Street May Open Slightly Higher

(RTTNews) - Canadian shares may open slightly higher on Monday amid optimism about some positive progress in U.S.-China trade talks. Energy stocks are likely to find some support on higher crude oil prices..

The U.S.-China discussions will aim to resolve some major trade disputes between the two major economies. Treasury Secretary Scott Bessent leads the U.S. delegation in the high-level trade talks.

The meeting happens following last week's direct phone call between U.S. President Donald Trump and Chinese President Xi Jinping.

Amid a lack of significant economic or earnings data, the market is likely to move largely in a tight band.

The Canadian market ended modestly higher on Friday despite paring some gains after a firm start. The Canadian benchmark S&P/TSX Composite Index settled at 26,429.13, up by 86.84 or 0.33%. For the week, the TSX has managed to gain around 1%.

According to data released by Statistics Canada, the unemployment rate in Canada rose to 7.0% in May from 6.9% in April. However, net employment rose by 8,800 jobs. Average hourly earnings for permanent employees rose by 3.5%.

Asian stocks rose broadly on Monday amid hopes that another round of U.S.-China trade talks that will take place in London later today could help ease trade tensions between the two superpowers.

Beijing confirmed that Vice Premier He Lifeng will attend the talks. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer would likely be present with the U.S. delegation.

European stocks are mostly subdued today with investors making cautious moves with their focus on U.S.-China high-level trade talks in London.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.28 or 0.43% at $64.86 a barrel.

Gold futures are down $7.10 or 0.21% at $3,339.50 an ounce, while Silver futures are gaining $0.291 or 0.81% at $36.430 an ounce.